The United Way of Weld County would like you to be aware of tax incentives that are included in the Coronavirus Aid, Relief and Economic Security Act (CARES Act) that provide a unique opportunity to help support nonprofits. To encourage charitable giving in 2020, the CARES Act includes tax provisions that reward people who donate to charity.
For people who do not itemize deductions in 2020, you can still reduce your taxable income by up to $300 for cash donations to any public 501(c)(3) charities such as United Way .
For people who itemize, the 60% of adjusted gross income (AGI) limit that normally applies to cash donations will be waived for 2020 taxes. That means you could conceivably deduct 100% of your AGI for donations to the United Way of Weld County.
The CARES Act also suspends the requirement that retirees take a minimum withdrawal from their IRA’s, 401(k) plans and other retirement accounts in 2020. Qualified charitable distributions are still a great way for donors 70 ½ or older to make charitable contributions. An “IRA charitable rollover” allows you to contribute from your IRA up to $100,000 to the United Way of Weld County or other nonprofit organizations tax free.
We encourage you to check with your financial or other advisors to see how these temporary rules apply to you.
